Kyiv-listed stocks ended mixed last week, but the PFTS index lost a notable 1.3% to 506 points after a 5.5% drop in heavyweight CentrEnergo (CEEN). Local traders dumped the CEEN stock after the State Property Fund stated bluntly that the company will likely go un-privatized for yet another year; successive Ukrainian governments have been promising and failing to privatize the company every year since 2012. CentrEnergo’s close peer DonbasEnergo (DOEN) also fell 2.4% to UAH 24.40. On the other end of the benchmark, Raiffeisen Bank Aval (BAVL) added 3.1% to 34.00 kopecks on hopes of a strong profit figure for the bank in 4Q19.
On the domestic political front there was a large but brief scandal after Prime Minister Oleksiy Honcharuk was caught on tape saying that President Zelenskiy understands little about the economy. Honcharuk symbolically offered to quit the job after a series of audio recordings were leaked online, but as expected, Zelenskiy refused the resignation.
London-listed natural gas producer JKX Oil&Gas (JKX) remained on the rise, advancing 12% to GBp 31.90 following its 20% surge in preceding week after the company published an upbeat operational update for 2019. However, Regal Petroleum (RPT) lost 7.4% to close at GBp 22.50. Ferrexpo (FXPO) added 7.0% to GBp 156, ignoring negative news that the Ukrainian Parliament voted for a bill that raises the iron ore production tax from 8% to 12%. Sporadically-traded MHP (MHPC) declined by 1.8% to USD 8.90 per share.
In Warsaw trading, Astarta (AST) jumped by almost 20% to PLN 18.70 as news spread that key owner and CEO Viktor Ivanchyk has started buying up shares from the market to take advantage of the beaten-down stock’s historically low quotes. Kernel (KER) was little-changed at PLN 48.70, pausing after its solid rise from PLN 44.00 to PLN 48.80 per share since the start of the new year.
The hryvnia experienced notable pressure for the second week in a row, devaluing by 1.8% to 24.34 UAH/USD.
POLITICS AND ECONOMICS
- Zelenskiy Refuses Honcharuk Resignation After Leaked Audio Scandal
- MinFin Claims Triggers for Ukraine’s VRI Payouts Haven’t Appeared
STOCKS IN THE NEWS
- Ferrexpo’s FY19 Output Slips 1% YoY to 10.5mn Tonnes
full report
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